Question

the linen department had net sales of $80,000. there was a 2% loss, and the gross margin was 46%. determine the operating expenses of the department and express the result in dollars and as a percentage

Answer 1

48%

Step-by-step explanation:

Net sales of $80,000

A 2% loss

Gross margin was 46%

Profit Loss = 2% - $80,000

= 0.02 * $80,000

= $1,600

Gross margin = 46% * Profit loss

= 0.46 * $80,000

= $36,800

Net Profit = Gross Margin - Operating Expenses

-$1,600 = $36,800 - Operating Expenses

Operating Expenses = $36,800 + $1,600

Operating Expenses = $38,400

Operating Expenses % = Operating expenses / Net sales

Operating Expenses % = $38,400 / $80,000

Operating Expenses % = 0.48

Operating Expenses % = 48%